KPN in Talks to Sell E-Plus Unit to Telefónica

Sale of KPN's German Operations Could be Worth $6.6 Billion

By

Eyk Henning and

Archibald Preuschat in Frankfurt and

David Román in Madrid

Updated July 22, 2013 1:13 p.m. ET

Dutch telecom company Royal KPN NV is in advanced talks to sell its German mobile operator E-Plus to Spain's Telefónica SA in a deal that is potentially valued at around €5 billion ($6.6 billion) and would create the country's largest mobile-phone operator.

KPN and Telefónica's announcements on Monday came after months of speculation on a possible tie-up of the companies' respective German units, called E-Plus and Telefónica Germany,...